How do wages respond to financial recessions? Based on a dynamic macroeconomic model with frictions in the labor and … and explore their effect on wages. First, the financial labor wedge reduces wages. Second, financial constraints may … interact with aggregate labor market conditions in various ways putting upward or downward pressure on wages. We test partial …

wages, which does not impose any structure between real wages and observed cyclical indicators. In particular, we employ a … Bayesian dynamic factor model and longitudinal microdata to estimate common latent factors driving real wages. We find that the … comovement of real wages is related to a common factor that exhibits a mild correlation with the national unemployment rate. Our …

Nash-bargained wages rather than actual wages, then the cyclical volatility of unemployment would decrease to less than one … seventh of what it is in the data. We compare our results to various models of rigid and flexible wages in the literature. …

vacancy longevity for modeling and calibration, in particular regarding match cyclicality and wages. When calibrated to the …

vacancy longevity for modeling and calibration, in particular regarding match cyclicality and wages. When calibrated to the …

vacancy longevity for modeling and calibration, in particular regarding match cyclicality and wages. When calibrated to the …